I consult with a lot of early-stage SaaS startups. Many are trying to raise a PreSeed round of VC funding, and most are struggling. VC fundraising has declined by over 50% since the heydays of 2021, and while preseed and seed stage deals have been hit just as hard as Series A, B, C & D. Some recent data from CBInsights, Pitchbook, and DocSend provide great qualitative and quantitative insights into what has changed in 2023.
Some Recent Data
There have been a few good recent reports that talk about the state of preseed and seed funding:
- CBInsigts State of Venture Q3’23 Report talks about the overall trends in the VC market
- PitchBook Analyst Note: Introducing the Pre-Seed Dataset provides in-depth data on global, USA, and European preseed raises 2023
- DocSend’s The pre-seed round in 2022-23: From FOMO to JOMO: VCs shift from rapid growth to long-term risk aversion provides great quantitative insights into how VCs are interacting and reacting to preseed pitch decks
Overall VC Trends
As CBInsights pointed out, the number and value of VC deals in 2023 has fallen by half in comparison to 2022:
PreSeed Raise Trends
As Pitchbook pointed out, preseed deals and values have taken a major hit, but pre-money valuations have not been affected as much:
PitchBook Analyst Note: Introducing the Pre-Seed Dataset
PitchBook Analyst Note: Introducing the Pre-Seed Dataset
Qualitative Insights Into VC Reactions to 2023 PreSeed Decks
DocSend is a great tool for sharing VC decks that provides significant analytical insights into how VCs interact with pitch decks. Their recent report provides some great insights.
Research Approach
Key Findings
VC Activity Down, Founders More Active
VC Scrutiny Has Changed in 2023
# of VCs Contacted
Time to do a raise
Key Stats
Deck Contents
Also published on Medium.
John Mecke
View More PostsJohn is a 25 year veteran of the enterprise technology market. He has led six global product management organizations for three public companies and three private equity-backed firms. He played a key role in delivering a $115 million dividend for his private equity backers – a 2.8x return in less than three years. He has led five acquisitions for a total consideration of over $175 million. He has led eight divestitures for a total consideration of $24.5 million in cash. John regularly blogs about product management and mergers/acquisitions.
